"Obviously we had a very successful season together at Birmingham and Nicklas did very well," Larsson told The Sunderland Echo.
"He scored a lot of goals and was our main striker. I know how Nicklas plays and how he likes the ball and I think he knows how I deliver the ball.
"It helps that there's someone to aim for and, in general play as well, he's not just a guy who will flick it on.
"He tries to take the ball down off his chest and that's really important for us, especially in spells when you're under pressure.
"You need the guy up front who can hold it up."
And Larsson added that the Gunners loanee was enjoying his time so far at his new club.
"He seems really happy when I've spoken to him," he added of the 23-year old.
"He probably felt it was his time to move on and enjoy his football somewhere else. I'm delighted he decided to come here because I think he can be a big player for us.
"People probably think he's a lot older than he is.
"But the only spell in his career when he played regularly was at Birmingham and he did fantastically well, so he'll benefit from being on the pitch more often than not."